Economic Myths #9 – Social Safety Nets

[First published on Free Life]

It is often trumpeted as a virtue that “civilised”, social democratic countries offer their citizens one or more types of “social safety net” in an attempt to eliminate the most dire effects of, say, unemployment, illness or some other kind of incapacity that could inflict a condition of extreme poverty upon the individual members of the citizenry. The idea is that the most basic wants will always be guaranteed by the state should one be unable to provide them for oneself and no one need have any fear of hunger or lack of shelter – situations that are said to be “intolerable” in a modern, twenty-first century society.

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Is the Free Market Uncaring?

A distinct disadvantage of advocating for a society free from state interference is that winning either the rhetorical or emotional battle is a lot more difficult. Democratic socialists and redistributionists can effectively wear their bleeding hearts on their sleeves, forever declaring their care for the poor, the sick, the elderly, or whichever group is in need of their pitiful platitudes at any particular time. Libertarians, on the other hand, appear to advocate for nothing more than greed and selfishness by calling for the right of every person keep own his/her income. Surely this would be the slippery slope to each of us ferreting ourselves away in an increasingly atomised existence?

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Rich vs Poor – a False Dilemma

Conventional thinking about social, political and economic matters tends to narrow the options available to a set of policies advocated by two, possibly three political parties of scarcely dissimilar ideologies. Any genuinely radical approach concerning these topics is abandoned given that the fundamentals are deemed to be beyond question. Thus, alternatives to these entrenched matters – such as whether the state should have any positive role at all in anything – are seldom given the light of day, let alone the opportunity of being debated.

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